Envoy Medical Insiders Up US$4.0m On US$8.17m Investment
Insiders who bought Envoy Medical, Inc. (NASDAQ:COCH) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the US$8.17m worth of stock they bought is now worth US$12.2m, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Envoy Medical Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Glen Taylor bought US$7.5m worth of shares at a price of US$0.40 per share. Even though the purchase was made at a significantly lower price than the recent price (US$0.60), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Envoy Medical insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Envoy Medical
Envoy Medical is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Envoy Medical
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Envoy Medical insiders own about US$14m worth of shares. That equates to 31% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Envoy Medical Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Envoy Medical and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 6 warning signs for Envoy Medical (of which 4 make us uncomfortable!) you should know about.
But note: Envoy Medical may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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